THE TOPIC OF MAJOR DISCUSSION in most democracies is still the economy, but then economic issues have always been of the highest importance in any national organization of people since governments rely on business for lifeblood tax revenues to improve governance of the society.
So we notice, especially in recent times, that metropolitan leaders on assuming office have made matters of the economy their first priority.
This concern is necessary since the economy also provides jobs for the people, and aids in their social and personal development. But democratic traditions do not permit businessmen to be corralled into investing. The main role of the government is to provide the enabling environment for private property investment.
In this context, we find the recent speech by Governor of the Central Bank, Dr DeLisle Worrell, on the 40th anniversary of the bank’s founding to be of more than passing interest, because it allows the ordinary consumer a peep into the thinking of the bank’s leader.
Dr Worrell is quoted as remarking that what distinguishes us from our neighbours is that “we have always been able to live within our means as far as foreign exchange is concerned”.
He continued: “The economy is stable if enough foreign exchange is coming in to meet our needs and, conversely, when we plan to spend more than is coming in, we have to cut back on that intended spending because we have to live within our means.”
“Cutting and contriving” has been the culture of Barbadians for many years, although the late Excellent Sir Frank Walcott had to caution us some time ago of the dangers of having champagne tastes and mauby pockets.
But we must also stimulate the economy if we are going to lift ourselves out of the spiral of low or no growth, for if any economy anywhere is “going nowhere fast” to use a local expression, then national improvement is hampered, and confidence in the economy may eventually become a problem.
The governor also emphasized the vital importance of projects like Four Seasons, Port Ferdinand, Limegrove and the Bridgetown Cruise Terminal while urging that we must do all in our power to keep at the forefront of the tourism market, where we are exceptionally strong
in the luxury end.
This technique has two edges, for while we cut back as sensibly as we can, on the one hand, we are being advised of the importance of earning more foreign exchange on the other. It is a recipe for success if we can get it done, and no sensible citizen will disagree in principle.
But it requires national effort at all levels of the society, from the consumer who has real cumulative purchasing power to the captains of industry who make the equally important decisions to invest; and, most important of all, it requires the right enabling platform provided by Government from which entrepreneurs can launch successful ventures for all our benefit.
The governor’s speech is important and should fuel further rational debate about our economy at this critical time.
